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The developers of SSADM understood that in almost all cases there is some form of current system even if it is entirely composed of people and paper. Through a combination of interviewing employees, circulating questionnaires, observations and existing documentation, the analyst comes to full understanding of the system as it is at the start of the project. This serves many purposes.
=== Stage 2
Having investigated the current system, the analyst must decide on the overall design of the new system. To do this, he or she, using the outputs of the previous stage, develops a set of business system options. These are different ways in which the new system could be produced varying from doing nothing to throwing out the old system entirely and building an entirely new one. The analyst may hold a brainstorming session so that as many and various ideas as possible are generated.
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*the distribution of the system, for example, is it centralized to one office or spread out across several?
*cost/benefit
Where necessary, the option will be documented with a logical data structure and a level 1 data-flow diagram.
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